Ocado forms a falling wedge pattern
Nicolas Suiffet December 11, 2020 4:21 AM
A falling wedge pattern is taking shape (reversal up trend pattern) in Ocado...
Ocado said that retail revenue rose 34.9% on year to 579.6 million pounds in the 13 weeks to November 29. The jump was however less than expected. The British group specializing in online food distribution, has once again raised its Ebitda forecast for the current fiscal year.
The company said: "Increased social distancing restrictions, in place nationally since early November, contributed to continued strong trading performance at Ocado Retail which continued to experience a "smoothed" trading week into the year-end compared to the peaks and troughs that reflected normal shopping habits pre-COVID. Combined with the impact of operational leverage in the retail business, Ocado Group now expects full year EBITDA to be over £70m."
From a chartist point of view, the stock price is posting a consolidation move within a long term bullish trend. A falling wedge pattern is taking shape (reversal up trend pattern). The 50WMA is ascending and in support of the bullish trend. A price pattern breakout would call for a rebound towards the resistance zone 2648p - 2814p. Prices need to stand above 1917p to maintain the bullish bias (Bollinger + 50WMA + horizontal support).
Source: GAIN Capital, TradingView
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.